Kaanapali Beach Maui

Maui Tourism Crisis Exposes Hawaii’s Brutal Catch-22

Travelers planning trips to Maui this year are facing a question that goes far beyond beaches and sky-high hotel rates: if Hawaii needs tourism, why does it sometimes feel like visitors are being pushed away?

Maui’s economic engine, tourism, is moving slowly, with about half a million fewer tourists expected in 2025 than before the pandemic. Yet even as officials urge visitors to return, the mayor has restated his aggressive plan to eliminate thousands of vacation rentals. This move continues to send a very different signal.

The result? A growing disconnect between how badly the island needs tourism to survive, and how conflicted it’s become about the form that tourism should take.

Maui’s experience now exposes Hawaii’s most difficult tourism Catch-22: the islands rely on visitors, but the costs — environmental, cultural, and economic — have never felt larger or more personal.

Vacation rental ban sends shockwaves.

One epicenter of this growing uncertainty is Maui Mayor Richard Bissen’s plan to eliminate thousands of short-term rentals across West Maui. These aren’t new properties—most have operated for decades and are among the most popular places for visitors to stay. But the mayor wants them gone soon to create long-term housing.

The plan has stirred fierce local debate and garnered national attention. Some residents support it, saying it’s the only way to reduce housing costs and preserve neighborhoods. But others, including many readers on Beat of Hawaii, say the plan drives visitors and locals away — and deepens the crisis instead of solving it.

A travel market in decline

Forecasts from the University of Hawaii project that Maui will welcome far fewer tourists this year than in 2019. That’s not just a huge dip — it’s a long-term shift hitting small businesses and their employees, rental owners, and others who depend on visitor dollars.

As reader Maria K. put it, “Vacationers bring money into Maui. So what’s the problem? How can people afford a home if you take their jobs away?”

Others are voting with their wallets. Liza shared, “This has definitely impacted our decision to not visit Maui anymore. We haven’t been back since 2019 and are pursuing other options currently.”

Uncertainty over where — and whether — to visit.

The more significant problem now may be the message Maui is sending. Even seasoned visitors are confused — not just about where to stay, but whether they’ll still feel welcomed at all.

K.S. wrote, “We tend to book a year out and had to cancel our travel plans to Maui due to the uncertainty. We don’t want to risk losing our deposit if the short-term rental rules go into effect.”

The message some travelers are receiving feels more personal. Reader Redblood shared: “Locals hate visitors and look like they could become violent, especially on the road to Hana. It’s obvious the state is incapable of rebuilding Lahaina. I don’t think they want visitors or tourists.”

Others, like Steve H., are more heartbroken than angry: “We’ve visited the islands probably 10 times but Maui is our favorite, especially Kaanapali. What’s happened to Lahaina and now Kaanapali Beach is truly tragic. Not sure we will ever visit again.”

Economic survival or community preservation?

Supporters of the rental ban argue that real solutions require such sacrifice. As one commenter, Mike N., wrote: “We need to provide affordable housing for residents, not mainland owners for tourists. After Lahaina, the need is even greater.”

But opponents argue that the plan’s economics don’t add up. Phillip J. asked, “Even if this goes through, it will be tied up in courts for perhaps years. In other words, an STR ban is chaotic and will only hurt the people the mayor naively thinks he is helping.”

Andy H. added, “This will simply free up units for wealthy buyers and do nothing to help the housing shortage, all while killing jobs.”

Maui’s identity crisis is now Hawaii’s.

Hawaii’s deeper struggle isn’t just about zoning or rental bans. It’s about their tourism model itself—and who it ultimately serves.

Maui has been and will remain a testing ground for change, whether intentional or not. And for many travelers, the mixed messages are taking their toll.

As one longtime reader, Maui R., put it: “Eliminating the Minatoya rentals will never mean those units are occupied by Maui residents because they are patently unaffordable. And the courts will never uphold the illegal taking of long-held property rights. Tourists who can afford to travel will go elsewhere. We are not going to stay in hotel rooms. It’s just that simple.”

That conflict — between economic dependence and cultural exhaustion — is Hawaii’s Catch-22. And Maui, more than anywhere else, is where it’s playing out first and loudest.

The bottom line.

For now, Maui’s great tourism reset is leaving no one fully satisfied. Visitors feel pushed away. Residents feel priced out. And the hard truth is, both might be right.

Please share your thoughts. Mahalo!

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155 thoughts on “Maui Tourism Crisis Exposes Hawaii’s Brutal Catch-22”

  1. Let’s be clear here ,very ,
    Lahaina was centered around tourism period.
    So no amount of arguing either way will change that now or in future .And many of these locals simply want free handouts and poor poor me for the rest of their life’s
    I know many businesses who like my family lost everything .But at some point you get on with it .
    Many fellow owners and home owners are throwing in the towel saying it’s over we are leaving for good. Why is that being suppressed by the media? I have no doubt Bissen relayed that message as he is dividing residents by controlling the narrative …sounds familiar .

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    1. In 100% agreement, David. I have only visited Hawaii half 10 times or so, but you are correct. I commend you “speaking to power”. The government is perpetuating, through their policies which promote socialism. And the people that vote them in don’t care as along as they get something from the public treasury. That, by the way, is what Alexander Tytler suggests was the 8th step in the 8 steps in a democracy’s demise. The media is simply complicit because they agree with the liberal policies there. I’m hopeful that Maui and Hawaii make it through this. I’m just doubtful, unless making it through it means that only the wealthy will be able to afford and visit. Won’t be anyone waiting on and cleaning up after them, however, as those jobs, except with more government handouts, won’t pay enough. So Green and everyone on down to each of the mayors will double down in this losing strategy. It was predictable and avoidable.

    2. You are exactly right and I have posted this many times online. After 33 years of contributing businesses and a homeowner, am preparing in case I also need to throw in the towel. People say we voted the same politicians in. First off, we do not get much choice with who has been on the ballots. I still think re-count! I have looked for someone to recruit in running for office. Many of us did not vote for these … trying not to call names here. Any of us with half a brain and desire to work and not live on hand outs knows we need and welcome tourism. So many have left, I doubt we need as much housing as they say.

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  2. Hawaii government needs to learn there are a lot of beautiful places in the world to travel. Hotels are already overpriced and many times when there is a financial problem hotel tax is increased. Imagine when you are staying in Maui a portion of the tax you pay on your hotel or rental goes toward mismanaged light rail on Oahu. Smarten up state government, your residents need the tourists and we need to take good care of them. The entire basis of your economy depends on it

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  3. I would not visit Maui. I love hawaii but why would you go to a place where they did not love you back? Plus you are spending a ton of money to support their economy. And why is it now us and them on this beautiful island. Aloha.

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